Crude flat prices ripped higher this week, Seting off last week’s loss . Brent closed the week with gains, Closed above $96. Military escalation in gulf, Product market shortage, Tightening prompt crude markets, Continued to drag on oil complex.
Timespreads demonstrated tighter physical markets. Price structure curves dived into steeper backwardation across all major crude benchmarks. Brent, WTI and Dubai crude sport prompt backwardation of $3 – $5 while diesel timespread widened above $6.
Inventory reports showed draws across all commerical hubs. U.S crude stocks fell while diesel stocks improved. Tightening global fuel stocks mounting concerns across.
Refined products markets are strong. Diesel crack spreads reached all time high following the news that Russia would extend diesel ban through the end of the month. Gasoline crack spreads rolled off with the end of driving season.
Market positioning data showed that speculators once again the net buyers of brent futures and options during the week ending 1st Sep, 2026. Money managers increased their net-length in Brent crude oil futures and options by 37837 to 261,435 in the week ending Sep 1st. Longs rose positions by 15129 while shorts fell by 22708 positions. Other reportable net length rose by 2691 as per ICE data.
FUEL OIL MARKETS – TAKE AWAY
The week was characterised by stronger VLSFO premiums, elevated volatility and tight prompt supply, while HSFO also gained but at a slower pace. The Singapore window therefore remained highly sensitive to Middle East geopolitical developments, crude prices, blending-component availability and regional bunker demand. It is noted that Singapore LSFO cash differentials strengthened while HSFO differentials eased. FO LDO prices are likely to see moderate change on the down side for the second half of Sep, 2026.
